The Digital Systems Company was organized two years ago to take advantage of an Internet opportunity

The Digital Systems Company was organized two years ago to take advantage of an Internet opportunity. Investors paid $12 a share for 2 million shares with a $4 par value. In the next two years, the company had earnings of $2 million and $3 million, respectively. It paid dividends of $1.2 million and $1.3 million, respectively, in those years. At the end of the first year, Digital sold another 500,000 shares of stock at $15.5 per share. Construct the equity section of Digital's balance sheet initially and at the end of its first and second years in business. An answer of $1.2 million should be entered as 1,200,000.

InitiallyCommon stock$  fill in the blank 1

Paid in Excess$  fill in the blank 2

 Total Equity$  fill in the blank 3

At The End Of The First YearCommon stock$  fill in the blank 4

Paid in Excess$  fill in the blank 5

Retained Earnings$  fill in the blank 6

 Total Equity$  fill in the blank 7

At The End Of The Second YearCommon stock$  fill in the blank 8

Paid in Excess$  fill in the blank 9

Retained Earnings$  fill in the blank 10

 Total Equity$  fill in the blank 11